As per our report, the ePharmacy Market (Online Pharmacy Market) size at a worldwide level was worth USD 42.32 billion in 2019 and forecasted to grow at a CAGR of 16.81% during the forecast period. Increasing the prevalence of the internet of things across the world and the growing use of smartphones and tablets are the key factors driving the global online pharmacy market demand.
The situation raised because of the coronavirus has favored the growth of the global online pharmacy market. During the COVID-19 outbreak, many customers choose online medical stores than physical stores to stay safe from getting sick with the coronavirus. E-pharmacy is reliable and much safer. From March 2020, the epharmacy market has a surge in the growth rate due to the lockdown instructions. Around 30-40 percent of orders have leveled up in the digital platform since the pandemic started.
In India, 1.5-2 percent of sales are of online pharmacies. Increasing smartphone usage and growing awareness over the use of various applications are anticipated to propel the market's demand. Investments in the epharmacy have also raised to USD 81.60 billion in 2019. Many companies are investing in start-ups to escalate the need for India's market during the COVID-19 pandemic.
The pharmaceutical industries' sales channels are offering various offers for customers to provide convenience while shopping online. According to the survey, it is estimated that the market size of epharmacy will grow steadily even after the COVID-19 crisis.
TOP 5 U.S. Pharmacy Chains, By Total Prescription Revenues, 2017
|
Retail Pharmacy Chain |
Estimated Prescription Revenues in 2017 (billions) |
Drug market Share |
|
CVS Health |
$98.1 |
23.8% |
|
Walgreens Boots Alliance |
$64.3 |
15.6% |
|
Walmart |
$20.5 |
5% |
|
Rite Aid |
$15.8 |
3.8% |
|
Kroger |
$13.1 |
3.2% |
Source: drugchannels.net
KEY MARKET TRENDS
The growing scope of e-commerce has made it easy for e-Pharmacy to capture a large customer base in developed and developing countries of the world. This generation relies heavily on the online supply of products such as cosmetics and medicines without a prescription. There are also various startups worldwide due to the advent of new information technologies and algorithms that provide a better experience and consumer satisfaction. It is believed that new technologies based on artificial intelligence will ensure better customer satisfaction in the market. All of these factors are escalating the growth of the global epharmacy market.
Rising incidences of chronic diseases and increasing awareness over online pharmacies is to surge growth opportunities for the global ePharmacy market. Furthermore, the market is propelled by the implementation of e-prescription, which is an easy and convenient process in pharmaceutical companies.
Government agencies' efforts to reach regulatory agreements and ethical practices in the field of e-pharmacy in some major dynamic regional markets are expected to open lucrative business opportunities for the stakeholders operating in the global ePharmacy market.
There are strict regulations for the sale of prescription drugs through online channels. Sales of prescription drugs through the electronics industry in North America and Europe are highly regulated. Companies must comply with various rules that could impact ePharmacy Market development in these areas. Besides, not all countries in the world have legalized the sale of prescription drugs through websites. It is believed that factors such as the unregulated sale of prescription drugs that could lead to online drug bans will lead to lower revenue in the world ePharmacy Market. Possible confidentiality, improper packaging, failure to verify drug interactions are other significant challenges that can slow the growth of the online pharmacy market.
However, the rise in fraud activities is slightly restraining the demand of the ePharmacy market. Security and privacy concerns among people have remained a challenging factor for the Online Pharmacy market.
REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2019 – 2025 |
|
Base Year |
2019 |
|
Forecast Period |
2020 – 2025 |
|
Segments Analyzed |
By Drug Type, Product Type and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter's Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regions Analyzed |
North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
|
Companies Analyzed |
Lloyds Pharmacy Ltd., Planter, CVS Health, Canada Drugs, Medicate, Express Scripts Holding Company, Secure Medical Inc., Walmart Stores Inc., Sani care AB, Walgreen Co., The Kroger Co., Doctors, Rowlands Pharmacy, Giant Eagle Inc. and Optus Rx Inc. |
This research report on the global ePharmacy market has been segmented and sub-segmented based on the drug type, product type, and region.
ePharmacy Market - By Drug Type:
Based on drug type, the OTC drugs segment witnessed the most significant shares of the market. The rise in the demand for electronic devices rather than traditional techniques is mainly fuelling the growth of the ePharmacy market.
Over the counter market, the segment has the most significant growth in the e-pharmacy market since the beginning due to its reliability, lack of prescription, and convenience for the consumer to purchase it. The OTC drugs are regulated by authorized agencies to provide a better substitute for the drug. It contains the same active pharmaceutical ingredients with consideration of safety and efficacy when administrated without a physician consultant. The OTC drug counter has the available number of types of general conventional disease medicine, which quickly taken by consumers. The OTC segment had the fastest e-pharmacy market growth in 2019. However, the prescription segment is also increasing at a significant rate due to the rise in the demand for online prescriptions.
ePharmacy Market - By Product Type:
Based on product type, the Skincare segment is ruling with the highest shares of the ePharmacy market with the increasing concern towards the beauty conscious. Skincare and nutrition segments are more lucrative segments than others. Nutrition such as vitamins and body gain and loss powder influencing the e-pharmacies market in recent years. Also, the female has an enormous demand for skincare products through e-pharmacies.
ePharmacy Market - By Region
Regionally, North America accounted for dominant shares of the global ePharmacy market owing to the emergence of software technology in the medical sector. North America has the largest e-pharmacy market globally due to the high adoption of e-commerce, a rising online platform for purchasing products, and rapid population growth, which is the crucial factor that fuels the global e-pharmacy Market. There are prominent vital players and development in pharmaceutical and other life sciences industries that more demand for the e-pharmacies market. The U.S. is the largest segment for the e-pharmacies market due to awareness of health and wellness and rising chronic diseases in this country. Reliable internet connection, more number of geriatric patients, and a more developed information technology structure will help the market grow in the United States. Recently, the food and drug administration (FDA) has provided more information about e-pharmacy to citizens, which significantly influences the market towards the growth side. Europe's e-pharmacy market is regulated by strict regulations government; even so, the growth of the e-pharmacy market is moderate in this country.
The Asia Pacific is the second-highest in leading the demand of the market. Asia-pacific is expected to reach the highest market share in the coming years due to the presence of large patients and rising population. China and India are the substantial population countries with the presence of prominent key players that accelerate the demand for an epharmacy product in the global market. Changing regulations in the various countries and the rising interest of international players in these markets with the new implementation and rapid penetration of web cloud-based technology will foresee the growth of the e-pharmacy market everywhere.
Europe is registered in having the fastest growth rate from recent years and also to hit the highest CAGR in the coming years. Increasing support from the I.T. sector and the adoption of cloud-based technology in every application is lavishing the demand of the ePharmacy market. The Middle East and Africa are to have prominent shares shortly.
TOP COMPANIES IN THE MARKET
Key market participants playing a crucial role in the global ePharmacy market profiled in this report are CVS Health, Walmart Stores, Inc., Walgreen Co., The Kroger Co., Rite Aid Corp, Lloyds Pharmacy Ltd., Planter, Canada Drugs, Medicate, Express Scripts Holding Company, Secure Medical Inc., Sani care A.B., Doctors Rowlands Pharmacy, Giant Eagle, Inc. AND Optus Rx, Inc.
RECENT DEVELOPMENTS IN THE EPHARMACY INDUSTRY:
In March 2019, in India, the National Association of Boards of Pharmacy (NABP) had certified 1mg with LegitScript. It is the first company in India to get this certificate.
In January 2019, a Swedish online pharmacy company focused on expanding its business across Europe by funding USD 5.5 million. It is to increase its portfolio in the online pharmacy market.
In November 2016, the Hyperlocal drugs delivery app was acquired by Netmeds Marketplace, where it delivered an application named Pluss for an undisclosed amount.
In June 2015, the acquisition between the Rite Aid Corp and Envision Rx Options had made many developments in the ePharmay industry. Mail-order pharmacies, along with prescription medicines, are provided due to this acquisition. Rite Aid Corp has entered into the Online Pharmacy Market with this acquisition and leading with the most significant shares.
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